Citigroup is understood to be on the verge of announcing a major break-up of its ‘universal banking’ model.
Citigroup is understood to be on the verge of announcing a major break-up of its ‘universal banking’ model. The bank is to separate its higher risk investment banking and US consumer finance business from its more sound global commercial and retail operations.
An announcement is expected to be made by chief executive Vikram Pandit either ahead or in tandem with the bank’s fourth-quarter results, scheduled for 22 January release.
The ‘bad’ bank, with around $700 billion in assets or around a third of its balance sheet, will still remain part of Citigroup, but it will report separately, and its access to capital will be limited, it is believed.
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